REALTOR® Mark Miller with Hudson REALTORS® in Centralia was frustrated as he attempted to help a buyer eager to purchase a foreclosed mobile home but had hit a roadblock when attempting to secure a title.
Mark was trying to sell a foreclosed mobile home located in Washington County. When originally purchased, the home was placed on a permanent foundation, was taxed as real estate, and the couple did not feel the need to keep the mobile home’s title. After foreclosure, Mark listed the property and found a buyer. The buyer’s lending institution would not provide a loan without a copy of the title. Without the original buyer, the Secretary of State’s office would not provide a copy of the title and the deal could have fallen through.
Mark contacted me for help with obtaining the needed information from the Secretary of State’s office. Working with the Secretary of State’s Government Affairs staff, we were able to get the required information on the previous owner, the title, and the property that the lender was able to complete with the transaction.
Illinois has no statutory provision to convert a manufactured home to real property when it is permanently affixed to land. As a result, the Illinois Bankers Association (IBA) introduced legislation (SB 1227) this year that would create a legal method of permitting an owner to convert the mobile home title. As the IBA indicated in testimony, without this step, homeowners could be left with unmarketable titles to their homes, lenders could be left with un-perfected security interests in their collateral, and most importantly, could hold up a possible closing for your clients.
The Illinois Association of REALTORS®, the office of the Secretary of State and other groups support efforts to address this very real issue that could become more prevalent. SB 1227 was approved in the Senate but has not yet passed the House. Action could occur as early as the fall session in Springfield.
Full text of Senate Bill 1227 is available on the Illinois General Assembly website, www.ilga.gov.
Kyle Anderson is the Illinois Association of REALTORS® local Government Affairs Director (GAD) representing the Greater Gateway Association of REALTORS®, Southwestern Illinois Association of REALTORS, and the Egyptian Board of REALTORS®.